The latest Janus Henderson Global Dividend and Buyback Index has revealed global share buybacks increased 26.8 per cent year-on-year to US$572 billion in the second quarter of 2026.
The study noted the rise was driven by increased profitability among technology and financial companies. To this end technology companies became the largest source of buybacks globally, repurchasing US$121.1 billion of shares during the quarter.
The sector also recorded the fastest underlying dividend growth at 23.5 per cent.
At a macro level global dividends also remained resilient, reaching US$757.8 billion in the second quarter. Underlying dividend growth was 7.3 per cent, with positive growth recorded across every region covered by the index.
Financial companies continued to be a significant source of shareholder returns. The industry was the largest contributor to dividends, distributing US$239.7 billion in the quarter with underlying growth of 8.1 per cent.
In Australia, companies distributed US$5.3 billion of dividends in the second quarter of 2026. Underlying growth was solid at 6.7 per cent. The report identified Evolution Mining Limited as a material contributor to this growth, supported by strategic asset management and high metal prices.
With a view to the remainder of the year the manager is expecting global dividend growth of between 5 and 6 per cent, while it anticipates buybacks to increase by around 7 to 8 per cent.
Janus Henderson equities client portfolio manager lead for Europe, Middle East, and Africa Jane Shoemake pointed out the data reflects a shift in the attitudes of companies about returning capital.
“Dividends remain an important long-term commitment, but buybacks give management teams much more room to respond as their priorities change,” Shoemake said.
“That flexibility is particularly important in technology, where the scale of investment in artificial intelligence is forcing companies to balance shareholder returns with significant demands on capital. As those investment requirements grow, buybacks are likely to be the first lever companies adjust, rather than regular dividends,” she added.
“That same distinction helps explain what we’re seeing in financials. Banks have spent years rebuilding their dividend bases and are now increasingly using buybacks to return surplus capital without committing themselves to permanently higher payouts.”
Janus Henderson head of Australia Matt Gaden recognised the trend is significant for domestic investors particularly in terms of where these sources of income to them are coming from.
“The sources of shareholder returns are becoming more varied across sectors and markets, which matters when you are building a portfolio designed to perform through different conditions,” Gaden explained.